The AI Catalyst Behind Alibaba’s Rise
Artificial intelligence is reshaping global technology markets, and few companies have ridden the wave as dramatically as Alibaba Group Holding Ltd. (BABA, 9988.HK). Once known primarily for its dominance in Chinese e-commerce, Alibaba is now reinventing itself as an AI and cloud powerhouse. In July 2025, the company’s Hong Kong-listed stock surged over 19% in a single session, adding more than $50 billion in market value.
This rally wasn’t fueled by hype alone—it was powered by triple-digit growth in AI-related product revenue and a 26% jump in its cloud division sales, proving that Alibaba’s pivot toward AI is delivering tangible results. While competitors like JD.com and Meituan continue to battle for razor-thin margins in traditional commerce, Alibaba has tapped into the most lucrative technological shift of the decade.
Alibaba’s AI Revenue Explosion
Alibaba reported triple-digit growth in revenue tied to artificial intelligence services, positioning itself as one of China’s leading AI developers. From chatbots and agent-based AI systems to open-source video generation models, the company has aggressively expanded its AI portfolio.
CEO Eddie Wu has repeatedly emphasized that artificial general intelligence (AGI) is now Alibaba’s long-term strategic goal. This declaration puts the company in direct competition not just with Chinese peers like Baidu and Tencent, but also with global AI leaders such as OpenAI, Microsoft, and Google.